Tip 26 - Why should you file a return if you have no income or no taxes owing?

Even if you are certain that you will have no balance owing or refunded in a given year, file a tax return for that year. Filing the return reduces the ability of CCRA to subsequently make arbitrary adjustments to your income and taxes owing for that tax year. Another reason for filing is that earned income reported on your tax return increases your future RRSP contribution room. Since RRSPs are a very valuable tax reduction tool, give yourself the maximum contribution room in case you need it in the future.

Filing a tax return also determines your eligibility for government programs such as the Canada Child Tax Benefit, GST Rebate, and other such initiatives.

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